- 30 Aug 2022
- ICICIdirect Research
RIL to boost PTA capacity
News: Reliance Industries (RIL) in its AGM announced that it will build largest single-train purified terephthalic acid (PTA) plant of 3 million metric tonnes per annum (MMTPA) capacity at Dahej. It will also invest in a 1 MMTPA PET plant at Dahej. Both PTA and Polyethylene terephthalate (PET) will be targeted for completion by 2026. It will also reinvest in polyester filament yarn (PFY) and polyester staple fibre (PSF).
View: Currently, India’s PTA capacity is at ~ 6.4 MMTPA of which RIL commands a lion's share of 78% (5 MMTPA). The new capacity at Dahej would boost its capacity by ~ 60% by FY26. More than 60% of the end usage application for PTA is in the textile space (polyester fibre and yarn). Considering the vast export potential, the Government of India has already announced incentives to promote the growth of man made fibre industry through production linked incentive scheme (PLI). Material increase in capacity by the market leader signifies bright prospects for India’s man-made textile value chain.